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WDC » Topics » Increases in our customers credit risk could result in credit losses and an increase in our operating costs.These excerpts taken from the WDC 10-K filed Aug 20, 2008. Increases
in our customers’ credit risk could result in credit losses
and an increase in our operating costs.
Some of our OEM customers have adopted a subcontractor model
that requires us to contract directly with companies, such as
ODMs, that provide manufacturing services to our OEM customers.
Because these subcontractors are generally not as well
capitalized as our direct OEM customers, this subcontractor
model exposes us to increased credit risks. Our agreements with
our OEM customers may not permit us to increase our product
prices to alleviate this increased credit risk. Additionally, as
we attempt to expand our OEM and distribution channel sales into
emerging economies such as Brazil, Russia, India and China, the
customers in these regions may have relatively short operating
histories, making it more difficult for us to accurately assess
the associated credit risks. Any credit losses we may suffer as
a result of these increased risks, or as a result of credit
losses from any significant customer, would increase our
operating costs, which may negatively impact our operating
results.
Increases in our customers’ credit risk could result in credit losses and an increase in our operating costs. Some of our OEM customers have adopted a subcontractor model that requires us to contract directly with companies, such as ODMs, that provide manufacturing services to our OEM customers. Because these subcontractors are generally not as well capitalized as our direct OEM customers, this subcontractor model exposes us to increased credit risks. Our agreements with our OEM customers may not permit us to increase our product prices to alleviate this increased credit risk. Additionally, as we attempt to expand our OEM and distribution channel sales into emerging economies such as Brazil, Russia, India and China, the customers in these regions may have relatively short operating histories, making it more difficult for us to accurately assess the associated credit risks. Any credit losses we may suffer as a result of these increased risks, or as a result of credit losses from any significant customer, would increase our operating costs, which may negatively impact our operating results. This excerpt taken from the WDC 10-K filed Aug 28, 2007. Increases
in our customers’ credit risk could result in credit losses
and an increase in our operating costs.
Some of our OEM customers have adopted a subcontractor model
that requires us to contract directly with companies, such as
ODMs, that provide manufacturing services to our OEM customers.
Because these subcontractors are generally not as well
capitalized as our direct OEM customers, this subcontractor
model exposes us to increased credit risks. Our agreements with
our OEM customers may not permit us to increase our product
prices to alleviate this increased credit risk. Additionally, as
we attempt to expand our OEM and distribution channel sales into
emerging economies such as Brazil, Russia, India and China, the
customers in these regions may have relatively short operating
histories, making it more difficult for us to accurately access
the associated credit risks. Any credit losses we may suffer as
a result of these increased risks, or as a result of credit
losses from any significant customer, would increase our
operating costs, which may negatively impact our operating
results.
This excerpt taken from the WDC 10-K filed Nov 20, 2006. Increases
in our customers’ credit risk could result in credit losses
and an increase in our operating costs.
Some of our OEM customers have adopted a subcontractor model
that requires us to contract directly with companies that
provide manufacturing services to our OEM customers. Because
these subcontractors are generally not as well capitalized as
our direct OEM customers, this subcontractor model exposes us to
increased credit risks. Our agreements with our OEM customers
may not permit us to increase our product prices to alleviate
this increased credit risk. Additionally, as we attempt to
expand our OEM and distribution channel sales into emerging
economies such as Brazil, Russia, India and China, the customers
in these regions may have a relatively short operating history,
making it more difficult for us to accurately access the
associated credit risks. Any credit losses we may suffer as a
result of these increased risks, or as a result of credit losses
from any significant customer, would increase our operating
costs, which may negatively impact our operating results.
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